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Mrs. A whose date of birth is 30th March 1956 has a total salary income of Rs. 9,78,000 for the previous year 2016-17. She has income from other sources of Rs. 18,142 from her savings bank account. Her only investments are contributions to Recognised Provident Fund account which are 12% of her basic salary of 40,000 per month.
1. What will be the total eligible deductions for AY 2017-18?
a. 10000
b. 57600
c. 62600
d. 67600
2. What will be her Taxable Salary for AY 2017-18?
a. 978000
b. 928542
c. 996142
d. 999542
3. What will be her tax liability for AY 2017-18?
a. 85708
b. 105708
c. 108880
d. 113708
Solution:
1 - d
Deductions eligible:
Interest up to Rs. 10,000 on savings bank (u/s 80TTA) = 10,000
Basic salary = 40,000
Recognised provident Fund contributions (cum. limit Rs. 1.5 lakh) = 57,600 (40000*12%*12)
Total deductions eligible = 67,600 (10000+57600)
2 - c
Income from Salary = 9,78,000
Interest from Savings bank account = 18,142
Total income = 9,96,142 (978000+18142)
Taxable Salary = 9,28,542 (996142-67600)
3 - c
Up to Rs. 3,00,000 : Nil (Senior citizen) = 0
Up to Rs. 5,00,000 : 10% in excess of Rs. 3 lakh = 20,000 ((500000-300000)*10%)
Up to Rs. 10,00,000 : 20% in excess of Rs. 5 lakh = 85,708 ((928542-500000)*20%)
Education Cess(es) = 3,172 ((20000+85708)*3%)
Total Tax = 1,08,880 (20000+85708+3172)
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